Collections Policy and Procedure

Service Twelve Inc. Collection Policy and Procedure
Annual Dues are Due May 31 yearly and considered Past Due July 1
 
PAST DUE STATEMENT FIRST NOTICE: (sent 30 days past due)
Past due statements will be mailed to a homeowner with a balance 30 days past due date which includes late fees or interest.  We offer to forgo the late fees if paid within 30 days.
 
DELINQUENCY NOTICE SECOND NOTICE: (sent 60 days past due)
Delinquency notices will be mailed to a homeowner with a balance after 60 days delinquent which includes late fees or interest.
Payment plan is an option within the delinquency notice letter – the board can approve or decline the payment plan.    (FDCPA requires offer of a payment plan)
 
DELINQUENCY THIRD/FINAL NOTICE: (sent 90 days past due)
Delinquency notices will be mailed to a homeowner with a balance after 90 days delinquent which includes late fees or interest.
Payment plan is an option within the delinquency notice letter – the board can approve or decline the payment plan.  (FDCPA requires offer of a payment plan)
 
15 DAY FINAL DEMAND LETTER: (sent 120 days past due)
15 Day Final Demand letter is mailed to the home owner. Payment plan is an option within the 15DFD letter – the board can approve or decline the payment plan.  (FDCPA requires offer of a payment plan)
Homeowners debt sent to third part collection agency 135 days past due
By board of trustee’s vote past 135 days delinquency up to six months  (16 days past 15 Day Final Demand Letter) a lien initiation may be sent to our Law office                                                                                                                                                
 
LAW OFFICE – (handles the following matters)
Intent to Lien (30 day turn around)
Lien on the Property (expires in 5 years; if paid in full must have lien released)
Foreclosure – by Bank – (LO monitoring)
Bankruptcy – (LO monitoring & advises on BK) – Association’s only directly deal with CH 13(up to 5yrs) or CH 7(120 days).    Bankruptcies can be dismissed or disregarded. 
 
We acknowledge as representatives of the Board of Trustee of Service Twelve Inc that after a 15 day final demand letter has been sent & expired and still in delinquency on the homeowner property, we as the Board have voted and are giving approval to move forward with law office collections such as Intent to Lien/Filing Lien on property
 
Regarding Foreclosures on a property, the Board understands they must give, in writing, the authorization to move forward with the Foreclosure.